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Sorren Benchmark Report

Summit Automotive

Sierra Vista, AZ · NAICS 441110 New Car Dealers

Tax year 2026
Prepared by Hannah Adeyemi
Tucson, AZ office
Section 1

Executive Summary

Summit Automotive generated $59,064,000 of revenue in 2026 with 110 employees, producing an EBITDA margin of -7.8% against a peer median of -7.8%. Compared with 49 similar businesses, performance is strongest in growth and warrants examination in leverage. Total benchmark variance across all categories is $29.29M.

Section 2

Company Snapshot

Revenue
$59.06M
Employees
110
Entity type
S Corporation
Years in business
29
Gross margin
7.8%
EBITDA margin
-7.8%
Net margin
-12.2%
Effective tax rate
0.0%
Section 3

Peer Group Definition

49 businessesNAICS 441110 — New Car DealersAZRevenue $29.5M–$94.5M55–154 employeesTax year 2026

Comparison sample size 49; NAICS 441110; revenue range $29.50M$94.50M; geographic filter AZ. Data availability for this client: 93% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold92.2%92.2%77.1%
Gross Profit7.8%7.8%22.9%
Payroll5.4%6.1%5.6%
Benefits0.9%0.9%0.8%
Occupancy0.9%1.1%1.0%
Marketing1.2%1.2%1.3%
Insurance0.8%0.7%0.6%
Professional Fees0.5%0.4%0.4%
Administrative & Other4.8%4.7%4.4%
EBITDA-7.8%-7.8%6.8%
Depreciation1.0%0.9%0.8%
Interest3.4%2.9%2.6%
Net Income-12.2%-11.9%2.2%
Section 5

Profitability and Operational Efficiency

Growth
78th
Profitability
50th
Labor Efficiency
64th
Operating Efficiency
67th
Liquidity
24th
Leverage
19th
Tax Efficiency
71st
Asset Efficiency
48th
Section 6

Balance Sheet

Current Ratio
3.18
median 3.56
Quick Ratio
1.08
median 1.50
Debt / EBITDA
27980168.00
median 14953147.00
Debt / Equity
4.71
median 2.91
Days Sales Outstanding
11.62
median 12.02
Asset Turnover
1.50
median 1.61
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$1,535,614
Owner compensation
$933,881
Owner distributions
$0
Retirement
$156,970
Capital expenditures
$3,085,343
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$48.41M+2.4%3.6%-11.8%6.1%
2023$49.62M+2.5%3.3%-12.0%6.0%
2024$52.42M+5.6%4.2%-11.2%6.1%
2025$55.12M+5.1%7.3%-8.3%6.3%
2026$59.06M+7.2%7.8%-7.8%6.4%
Section 9

Opportunities for Discussion

  • Revenue per Employee. Revenue per employee of $537K compares with a peer median of $784K. Is productivity constrained by capacity, mix, or pricing?Benchmark variance $27.12M
  • Working Capital Position. Current ratio of 3.18 compares with an industry median of 3.56. How much liquidity headroom does the business need through its cycle?Benchmark variance $2.06M
  • Owner Compensation Structure. Owner compensation represents 1.6% of revenue compared with a 1.8% median for comparable entities. Should compensation strategy be reviewed with the tax team?Benchmark variance $106K
  • Leverage Profile. Debt to EBITDA of 27980168.00x compares with a peer median of 14953147.00x. Does the capital structure match the asset base and cash cycle?
  • Gross Margin Variance. Gross margin of 7.8% compares with a peer median of 7.8%. Where are direct costs and pricing diverging from comparable businesses?
  • Payroll Efficiency. Total labor cost represents 6.4% of revenue against a peer median of 7.0%. Is the staffing model carrying capacity for growth, or absorbing margin?
  • Operating Expense Load. Operating expenses run 15.7% of revenue versus a peer median of 16.6%. Which expense categories account for the difference?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.